Another U.S. city mulls bankruptcy due to soaring wages and pensions

[Dont Taz Me Bro]

Another city getting Kalifornicated by out of control wages and pension obligations for government union employees.

The problems in Desert Hot Springs came to light last week when a new finance director reviewed the city's records and discovered a $3 million shortfall in its budget of $13.5 million. Amy Aguer, the interim director of finance, did not have details on how the shortfall occurred but said it was the result of higher-than-expected pension and salary costs, especially in the police department, and overly optimistic estimates of revenue.

"It's obvious we can't continue with salaries and pensions that are in the stratosphere, no matter how much love there is for our police department," said Russell Betts, a council member.

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[SteadyMercury]

They've been going thru stuff like this in Phoenix, with most of the controversy involving the practice of spiking where (mostly higher level) city workers will manipulate their final year of pay by trading in hundreds of hours of sick time, vacation time, even cell phone and car allowances.

It is so stupid, sick time is for when you are sick. Why would anyone make that have cash value?

Then you actually have people saying if you don't pay out sick time then people will use it up every year by calling in sick, but to me that is a completely different issue involving employee discipline and behavior. If employees are suddenly abusing sick time, start asking for doctors notes or fire them.

 

[Richard-H]

In a society that considers Corporations to be people, despite the biological evidence, why would it you think that "sick time is for when you are sick"?

 

[william the wie]

The facts are that as many as seven states are at serious risk of default and they are all either D or swing states. those pensions will soon be gone.

 

[Mr. H.]

The entire state of Illinois will go under soon. $100 billion in un-funded pension obligations.

Yes that's billion with a B and that rhymes with P and that stands for Pool!

 

[RoadVirus]

It's the Republicans' fault. It just has to be.

 

[Freemason9]

It's the Republicans' fault. It just has to be.

You can actually attribute the biggest drains on public coffers to police unions and firefighter's unions.

I'll be among the first to agree--police should NOT have union protection. They have become armed thugs as a result.

 

[william the wie]

Yeah public unions are the achille's heel of the Ds.

 

[OnePercenter]

It's the Republicans' fault. It just has to be.

You'd have a point if these municipalities were in trouble prior to 2007.

 

[OnePercenter]

Just another 'let's blame our neighbor instead of our failed voting record' posts.

 

[Toddsterpatriot]

The entire state of Illinois will go under soon. $100 billion in un-funded pension obligations.

Yes that's billion with a B and that rhymes with P and that stands for Pool!

But they raised my income tax 66.6% a few years ago.
You mean higher taxes didn't cause a boom?